标题: Country premium and risk free rate on qbank [打印本页] 作者: irlfaan7 时间: 2011-7-13 16:02 标题: Country premium and risk free rate on qbank
Why are they not subtracting the risk free rate in the CAPM equation for this problem? _________________________
Jamal Winfield is an analyst with Stolzenbach Technologies, a major computer services company based in the U.S. Stolzenbach?作者: orang3eph 时间: 2011-7-13 16:02
Please note, it is "Market Risk Premium", which is 6% and NOT "Expected Market Return".
"Market Risk Premium" = E[Mkt] - RFR
So, RFR has already been subtracted, when using "Market Risk Premium".
